Eastern Europe – a favorite target of speculative attacks

Восточная Европа – любимое объектом спекулятивных атак

History of speculative attacks did not start with Poland, Hungary and Romania and finish with them. There were, however, and will continue to exist, regardless of how strong or weak currency markets is concerned. I did not get into the technical details of speculative attacks. Crises are the first generation, second generation, whose mechanisms have been the subject of study of central banks.
There have been published about the valuable works (IM) and their predictability about the possible reaction of monetary policy in the event of such attacks. Nobody can force a speculative fund not to enter a market. It’s their choice and risk their money for that. But it can have reactions decent economic confidence. One of the measures is like imposing a Tobin tax. Nobel laureate for economics James Tobin proposed that international financial transactions to be charged with a certain percentage, to limit the appetite for speculation. Another Nobel laureate, Stieglitz, it’s supporters of the initiative, and it debated at the UN. Another measure of good sense that most governments have taken it in times of financial speculation has been raising key interest. Such a decision makes much more expensive on speculative currency. In fact, Hungary’s latest economy which has so, after a few days (but intervention proved to be late, publicly forint continue to decline). But not only technical problems of finances they can. That does not see why the sharks are given financial death watch for when you do not leave games. There are signs that those involved in the attack on the speculative markets of Eastern Europe, would be lost to Romania about all they earned in Hungary and Poland. As for who said it would be even better to limit losses, and interest on loans from banks which have sustained speculative attack have a sudden and huge increases have generated a huge scandal in the media in Romania. Last intervention by the central bank governor (to stop increasing interest rates on the interbank market) has scream the chorus of diverse voices, Isarescu being accused of “measures worthy of Putin’s Russia”. (How should we understand that Putin’s Russia is the nightmare Western bankers? )And that because they want to escape the nightmare, Russian companies will no longer receive loans by the end of the UK banks? Either it has not succeeded fully devalued the ruble?) Moreover, because the three foreign banks that have sustained speculative attack were invited to the headquarters of the Romanian central bank, immediately I was given to hear that Soros wasn’t invited to give explanations when a sprawling pounds sterling, that is what allows he to attentioned to be bankers. Intuition tells me that attacks on the governor Isarescu will not stop here. For that is not so, greed is good sister with arrogance, and neighbors with paranoia.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s